In a “Full Disclosure” World, Partial Communication Puts Companies at Risk
The information transparency and corporate governance issues that began emerging in the middle of the past decade are, today, being greatly exacerbated by the “Great Recession” that followed.
Meanwhile, legislatures and regulatory bodies around the world are intensely focusing on financial reform.
What these economic megatrends share is a common emphasis on the transfer of power over corporate oversight from a small inner circle to public shareholders – investors at large.
“Increasingly, we are hearing the voice of the board in governance communications, not the voice of compliance,” says Mark Hynes, a 20-year veteran of the Financial Times and principal of U.K.-based investor relations consultancy Transparency Matters Ltd. “This necessitates as wide an outreach to investors – known and unknown, current and potential – as possible.”
At the same time, the need for accuracy and precision to complement transparency in investor communications has never been greater. Errors – whether in stated facts or in technical execution – can be extraordinarily costly to a company’s public trust, its market capitalization, or both.
This white paper examines how the world’s leading publicly listed companies are preparing to meet the challenge of an era in which oversight of everything up to and including the CEO’s pay will likely be put to public vote.
It’s an era marked by communications outreach in myriad forms, from releases of material information to the media, to the corporate investor relations site, to conversations in social media that must be monitored and effectively managed.